Before you read on: this article is general education, not financial advice. It does not consider your objectives, finances or experience. Do your own research, check any broker on the register of its regulator, and speak to an independent adviser if you are unsure.
Last updated 29 October 2026.
An order tells your broker how and when to buy or sell. Choosing the right order type controls the price you get, whether a trade is filled at all, and how your risk is managed. Most beginners use only market orders, but learning the others makes your plans more precise.
Market orders
A market order is filled immediately at the best available price. It guarantees that the trade opens, but not the exact price. In fast markets, the fill can be different from the price you saw on the screen. This difference is called slippage.
Worked example: EUR/USD is quoted at 1.0850 bid and 1.0852 ask. You place a market buy and are filled at 1.0853 because the price moved during your click. You paid 1 pip more than you expected.
Limit orders
A buy limit order is placed below the current price and fills only when the market falls to that level. A sell limit is placed above the current price and fills when the market rises to it. Limit orders control the entry price, but they do not guarantee a fill, because the market may never reach your level.
Worked example: EUR/USD is at 1.0850. You believe the price will bounce from 1.0820, so you place a buy limit at 1.0820. If the price falls to that level, the order fills at 1.0820 or better. If the price rises instead, you miss the trade, and you have not lost money.
Stop orders
A buy stop order is placed above the current price and triggers when the market rises to it. A sell stop is placed below and triggers when the market falls to it. Traders use stop orders to enter a breakout, when they expect a move to continue once it passes a key level.
Worked example: EUR/USD is in a range below 1.0900. You place a buy stop at 1.0905, so you only buy if the price breaks out above the range. The risk is that the breakout fails and the price reverses, which is why traders often set a stop-loss right after entry.
Stop-loss orders
A stop-loss is a stop order placed to close a losing trade at a set price. It is the main tool for limiting losses. It turns into a market order when triggered, so the fill may be worse than the stop price, especially on a gap or in a fast market.
Some brokers offer a guaranteed stop-loss for a fee. This fills at your chosen price even in a gap, but it usually costs extra. Check the terms before you rely on it.
Take-profit orders
A take-profit order closes a winning trade automatically at a set price. It locks in a gain and removes the need to watch the market constantly. It is covered in more detail in our guide to stop-loss and take-profit orders.
Trailing stops
A trailing stop moves with the price as the trade becomes profitable. It stays a fixed distance behind the market, so it locks in gains as the trend continues, and it never moves against you. Trailing stops are useful in trends, but they can close trades early in choppy markets, when price swings back and forth.
One-cancels-other and bracket orders
Some platforms allow you to place a pair of orders where one cancels the other, or a bracket order that includes an entry, a stop-loss and a take-profit at the same time. These help you set your plan in one step. Check how your platform handles them before you use them with real money.
Choosing an order type
- Market: when you need to get in now and accept the current price.
- Limit: when you want a specific entry price and can accept missing the trade.
- Stop: when you want to enter only after the price breaks a level.
- Stop-loss and take-profit: always, once a trade is open, to define your exits.
Practice exercise
On a demo account, place one of each order type on the same pair at different levels. Record the fill price for the market order, and observe whether the limit and stop orders fill as you expected over the next hour.
Summary
Market orders get you in now, limit orders control your entry price, stop orders trigger on a breakout, and stop-loss and take-profit orders manage your exits. Know what each order does before you place it, and expect fills to differ from quotes in fast markets.
Order types in more detail: placing and managing each one
Knowing the order types is only half the job. The other half is knowing what happens after you place them: how they are filled, what can go wrong, and how to manage them as the market moves. This section works through each order in more depth, using examples on EUR/USD.
Market orders in fast conditions
A market order is filled at the best available price when it reaches the market. In calm conditions, the fill is usually close to the quote. In fast conditions, such as during a central-bank announcement, the spread can widen sharply and the fill can be far from the quote you saw a moment earlier.
Worked example: EUR/USD is quoted at 1.0850 bid and 1.0852 ask. A release causes the spread to widen to 6 pips for a few seconds. A market buy placed during that moment fills at 1.0858. The entry is 6 pips worse than the quote, and the stop-loss placed afterwards must be measured from that fill.
Many traders avoid market orders in the minutes around scheduled news for this reason. A limit order can protect the entry price, although it may not fill at all.
Limit orders: fills and misses
A limit order only fills when the market trades at your price or better. This controls the entry, but it creates a different risk: you may miss the trade. If you place a buy limit below the market and the price bounces without touching your level, you have no position and no loss, but also no gain.
Worked example: EUR/USD is at 1.0850. You place a buy limit at 1.0820, expecting a pullback to support. The price falls to 1.0821, bounces, and rises to 1.0900. Your order never fills. You did not lose money, but your idea was correct and you did not participate. Traders should measure the value of missed trades as well as losing ones.
Stop orders and breakouts
A buy stop triggers when the price rises to the stop level, and then becomes a market order. This means a breakout entry is exposed to slippage and to false breakouts. The price can briefly pierce a level, trigger the order, and reverse. A common refinement is to wait for a candle to close beyond the level, then enter on the next candle, although this means accepting a worse price.
Worked example: EUR/USD has been trading below 1.0900 for two weeks. You place a buy stop at 1.0905. The price spikes to 1.0906, triggers your order, and falls back to 1.0880 within an hour. Your stop-loss at 1.0870 closes the trade for a 35-pip loss, with slippage on the fill. The breakout failed, and the stop-loss protected you from a larger loss.
Stop-loss orders: how fills really work
A stop-loss order becomes a market order when triggered. If the market moves quickly through your stop, the fill can be well beyond the stop level. This is slippage, and it is more likely in fast markets, around news, and at the weekend open.
Worked example: you hold a long EUR/USD position with a stop at 1.0800. A sudden event pushes the price from 1.0820 to 1.0770 within seconds. The stop triggers at 1.0800, but the first available price is 1.0775. The loss is 75 pips, not the 20 pips you planned. The stop still worked, but not at the level you set.
Some brokers offer guaranteed stop-loss orders for an additional fee. These fill at the stop price even when the market gaps. The cost is usually built into the spread or charged separately, so compare the total cost before you use them.
Take-profit orders: locking in the target
A take-profit order becomes a limit order at your target. It fills when the market reaches the level. Like a limit order, it may fill at the exact target or better, but it is not guaranteed if the market gaps past it in the other direction.
Worked example: you buy EUR/USD at 1.0850 with a target at 1.0920. The market reaches 1.0920 and your order fills at that price. You have a 70-pip gain, before costs.
Trailing stops in practice
A trailing stop follows the price at a set distance, for example 30 pips. As the price rises, the stop rises with it. If the price falls, the stop does not move. This locks in gains during a trend, but it can close a trade during a normal pullback.
Worked example: you buy EUR/USD at 1.0850 with a 30-pip trailing stop. The price rises to 1.0950, so the stop is now at 1.0920, locking in at least 70 pips. The price then falls to 1.0920 and the trade closes. You have locked in 70 pips, although the market went higher before it turned.
Bracket and one-cancels-other orders
A bracket order places an entry, a stop-loss and a take-profit together. Once the entry fills, the stop and target become active. A one-cancels-other (OCO) order places two orders, and when one fills, the other is cancelled. OCO orders are often used to trade a breakout in either direction.
Worked example: EUR/USD is in a range between 1.0800 and 1.0900. You place a buy stop at 1.0905 and a sell stop at 1.0795, as an OCO pair. If the price breaks up, the buy fills and the sell is cancelled. If it breaks down, the sell fills and the buy is cancelled. Check your platform, because not every broker offers OCO orders.
Order expiry and good-till-cancelled
Pending orders can expire at the end of the day, the end of the week, or stay active until cancelled. An order you forget about can fill at a time you did not plan for. Check the expiry setting on every pending order, especially before a weekend or holiday.
Common order mistakes
- Forgetting the expiry. A pending order fills when you are not watching.
- Placing a stop too close to the entry. Normal noise can trigger it.
- Using a market order near news. Fills can be far from the quote.
- Ignoring slippage in the plan. Plan for a fill a few pips worse than the quote.
- Modifying orders during a losing trade. Moving stops and targets without a reason changes the plan after the fact.
A practical order workflow
- Write down the entry, the stop and the target before you place any order.
- Choose the order type that fits the situation: market for immediate entry, limit for a specific price, stop for a breakout.
- Check the spread and the time to news before placing a market order.
- Set the stop-loss and take-profit at the same time as the entry where your platform allows.
- Check the expiry and the order list at the end of each session.
Practice exercise
On a demo account, place a market order during a quiet hour and note the fill against the quote. Then place a buy limit, a buy stop and a bracket order on the same pair, and record which filled, when, and at what price. Write a short note on what you learned about each order type.
Summary
Market orders get you in now, limit orders set your entry, stop orders enter on a breakout, and stop-loss and take-profit orders define your exits. Every order type has a trade-off between price, certainty and timing. Understand those trade-offs before you use them with real money, and check your pending orders regularly.
Sources and further reading
We checked the regulatory claims in this article against the following primary sources. Rules change, so check the current version before you rely on any figure.
ESMA press release, 27 March 2018 (leverage caps, 50% close-out and negative balance protection for EU retail CFD clients, and the 74-89% loss statistic).
FCA statement on the ESMA measures (the UK position).
FCA policy statement PS19/18 (permanent UK restrictions on retail CFDs).
Pip and lot definitions are market conventions rather than regulatory rules. Check the contract specification for each instrument with your broker.
Risk warning: trading forex and CFDs involves a high risk of loss, and most retail accounts lose money. This article is general education, not financial advice. Read our disclaimer.